Paymentin LieuofTaxes PILOT

Often the key to reaching agreement with local officials on siting issues and various other local project impacts, regardless of their particular approval process used by such officials, is the size and form of annual community compensation that will be received from the project developer, owner, or operator. Virtually all wind farm facilities will be subject to property taxes and from more than one local taxing entity (e.g., town, school system, county). Because the property tax obligation can be sizable enough to adversely impact project economics and jeopardize a project's financial viability (affecting the decision to build), most developers seek to negotiate an agreement with the local taxing entities to reduce that tax obligation, often called a Payment-in-Lieu of Taxes (PILOT) Agreement. By establishing a fixed set of payments over a specific long period of time in a PILOT agreement, the developer (and the project financers) will be assured of a known long-term expense that is not subject to either assessment change risk or tax rate risk.

Renewable Energy 101

Renewable Energy 101

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.

Get My Free Ebook


Post a comment